📊 IMF Confirms Vehicle Curbs Did Not Derail EFF Program as Imports Cross $ 1 Bn

The IMF clarified that Sri Lanka’s temporary tightening of vehicle import financing requirements did not derail its Extended Fund Facility (EFF) program, despite triggering a continuous performance criterion on import restrictions. • Overall Figures: The country's cumulative vehicle import bill crossed US$ 1.071 Bn during the first five months of 2026 (January–May). Expenditure on vehicle imports rose 20% month-on-month to US$ 250 million in May alone. • Policy Measures: To contain the sharp post-reopening surge in imports, the Central Bank reduced maximum loan-to-value (LTV) ratios on motor cars, SUVs, vans, and three-wheelers to 40% (down from 50%), and commercial vehicles to 60% (down from 70%). Additionally, a temporary 50% surcharge was imposed on the existing 30% Customs Import Duty. • IMF Stance: IMF Mission Chief Evan Papageorgiou stated the IMF Executive Board accepted the deviation during the combined Fifth and Sixth Review after the Government confirmed the curbs are temporary and outlined corrective actions to reverse them within the announced timeframe.